Married woman’s reduced rate between primary threshold and upper earnings limit (opted in pre April 1977)

5.85%

5.85%

Married woman’s rate above upper earnings limit

2%

2%

Employer’s secondary Class 1 rate above secondary threshold

13.80%

13.80%

Class 2 rate (per week)

3.05

3.00

Class 2 small profits threshold (per year)

6,475

6,365

Class 3 rate (per week)

15.30

15.00

Class 4 lower profits limit

9,500

8,632

Class 4 upper profits limit

50,000

50,000

Class 4 rate between lower profits limit and upper profits limit

9%

9%

Class 4 rate above upper profits limit

2%

2%

2020/21
£

2019/20
£

State Pension

New State Pension

175.20

168.60

Category A or B basic pension

134.25

129.20

Category B basic pension (lower) – husband’s insurance

80.45

77.45

Category C or D – non-contributory

80.45

77.45

Pension Credit

Standard minimum guarantee – single

173.75

167.25

Standard minimum guarantee – couple

265.20

255.25

Pensions

Annual allowance

40,000

40,000

Lifetime allowance

1,073,100

1,055,000

2020/21
£

2019/20
£

Individual Savings Account (ISA)

Individuals aged 50 years old or above during tax year

total maximum investment

20,000

20,000

maximum cash element of ISA

20,000

20,000

Junior ISA investment limit

9,000

4,368

Capital Gains Tax

Rate – basic rate tax payer

10%

10%

Higher rate tax payer

20%

20%

Individuals exempt limit

12,300

12,000

Other trusts

6,150

6,000

2020/21
£

2019/20
£

Inheritance Tax

Single persons nil rate band

1-325,000

1-325,000

Single persons 40% band

over 325,000

over 325,000

Married couples or civil partnerships allowance nil rate band

1,000,000

950,000

Overseas domiciled spouse exemption

325,000

325,000

Residence nil rate band

175,000

150,000

Gifts to charities

exempt

exempt

Small gifts to same person

250

250

Marriage/civil partnership gifts by:

Parent

5,000

5,000

Grandparent/party

2,500

2,500

Other person

1,000

1,000

A reduced rate of IHT of 36% applies where 10% or more of the net estate is left to charity.

2020/21
£

2019/20
£

Business Property Relief

Business or interest in a business and transfer if unquoted shareholdings

100%

100%

Corporation Tax

Normal main rate

19%

19%

Capital Allowances

Main writing down allowance

18%

18%

Special rate writing down allowance

6%

6%

Annual Investment Allowance, subject to change

1,000,000

1,000,000

First year allowances for certain energy-saving/water efficient products

100%

100%

VAT

Standard rate

20%

20%

Registration threshold

85,000

85,000

Deregistration threshold

83,000

83,000

Cash accounting scheme upper limit

1,350,000

1,350,000

Annual accounting scheme upper limit

1,350,000

1,350,000

Flat rate scheme upper limit

150,000

150,000

Key Dates

HMRC, Companies House and FSA impose various penalties and interest for lateness and inaccuracies.

Payroll Deadlines

05 April – Last day of tax year
19 April – Last date to submit EPS reports under RTI
31 May – P60s due to employees
06 July – P11D, P9D, P11D(b) forms due to HMRC and copies to employees as required
19 July – Class 1A NIC due for year-end 05 April
19 October – Class 1B NIC due for year end 05 April

VAT Deadlines

Quarter end date – one month and seven days to submit online return and send cleared payment

Self Assessment Deadlines

For individuals, sole traders and partnerships

31 July 2020 – second payment on account for 2019/2020
31 October 2020 – submission of paper tax return
31 January 2021 – submission of online return
31 January 2021 – First payment on account for 2020/2021 and any balance due for 2019/2020